Oil Field Service Provider Halliburton and Baker Hughes Give Up Plan of $28 Billion Merger Deal
Failing to get approval from the antitrust officials, Halliburton and Baker Hughes finally gave up their plans of a merger deal. On Sunday, they decided to chuck the deal which was valued at $35 billion at the time of its announced in November 2014. Now the deal was valued at $28 billion.
Houston, Texas based, Halliburton Co, the oil field services provider planned to tie up with its smaller rival Baker Hughes Inc which would have clubbed the No 2 and 3 of the oil services companies in the world. The merger faced concerns that; it would result in a price hike in the sector with lesser competition. In recent times, many companies in various sectors have failed to gain the blessings of the antitrust department and this is the most recent example.
Dave Lesar, chief executive of Halliburton said, "Challenges in obtaining remaining regulatory approvals and general industry conditions that severely damaged deal economics led to the conclusion that termination is the best course of action."
As a breakup fee, Halliburton has to pay$3.5 billion to Baker Hughes by Wednesday.